The Assignment of Income Doctrine Does Not Apply If the Transferor

question 3

True/False

The assignment of income doctrine does not apply if the transferor in a Sec. 351 exchange in which no gain is otherwise recognized transfers substantially all the assets and liabilities of the transferor's trade or business to the controlled corporation.

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Definitions:

International Workers of the World

Also known as the IWW or Wobblies, an international labor union founded in 1905 aiming for worker solidarity and the abolition of the wage system.

American Federation of Labor

A national federation of labor unions in the United States, founded in 1886, focused on advocating for the rights of skilled laborers.

American Protective League

A civilian organization during World War I that worked with federal law enforcement agencies to identify and counteract espionage and subversion.

Espionage and Sedition Acts

A set of laws enacted by the U.S. during World War I, making it illegal to interfere with military operations, support enemy nations, or hinder the war effort, often criticized for restricting free speech.